>> they stopped using copper in china? give me a break. buy it >> and again, qualcomm, pinterest, paypal. >> i never got to applaud you for are o.t. must watch >> and you're welcome anytime. "the exchange" is now. thank you very much, scott hi, everybody. i'm kelly evans. and not only are stocks higher today but the dow is higher despite a huge drop in shares of boeing after what some are calling a travesty of an earnings report, the s&p is down the u.s. stocks no longer the best game in town. one of the biggest worry spots right now are china's covid lockdowns. that could mean the chip shortage is about to get worse

before it gets better and we'll tell you which companies are more exposed this time around and look at how microsoft and visa are saving the day. we'll preview the next round of results in earnings exchange and is almost a mirror image of this time yesterday. >> it's crazy to think about how things have changed around but we have more ground to make a up if we're to get back all of the losses we saw in yesterday's big sell-off session and dow industrials is tilting towards the highs of the session right now. we are seeing the nice move higher up about a percent. 3424, up nearly 50 points north of 1% gains there. and similar percentage for the nasdaq composit. we'll see if you can hold above the mark as we geinto afternoon trade. woe need a little bit more to get back what we lost yesterday. no surprise that the three worst

performing sectors are those tilted towards some of the large and mega cap-growth, orgentedianted or discretionary stocks think communication services the three worst performing sectors in the s&p because they encompass names like apple, microsoft, tesla and others. that state of play for that particular set of sectors, very important to the overall market narrative. they makeup the bulk of the s&p 500. you mentioned jux tuposition of what we're seeing in the dow strong performance on the top and bottom line for visa they think a resurgence in travel demand will help people spend more money, especially swiping credit cards meanwhile, boeing, down about 12.7 and a half pir percent and production delays for some of

the key new models, especially the 777 x model. watch those particular move there. vees issau, microsoft, the biggest contributors >> down 7.5% and that's off the lows . for my next guest says visa showed us the money and you need to look long and hard for other stocks just like it. here's with the pick is the chief equity strategist. and good to see you. you know, visa a, with in some ways, is a barometer there's more than visa investors breathing a sigh of relief you think this shows how important stock selection is >> absolutely. it's nice to be with you again it's a very interesting report and we own visa and i was pleasantly surprised by the report because there's so much head winds in terms of international travel and war in ukraine and they were able to boast a rate number. it's ironic that boeing, who

relies on international travel as well, is suffering right now. we think that's somewhat short term and may prove to be a long-term opportunity. >> i don't want to ask you early on in the segment. we got to talk about boeing. if stock selection is more important than ever, then getting it wrong hurts more than ever, right? i know we've talked about it in the past are you still a share holder >> we are still a share holder are in fact, i like the set up now for the rest of the year it's the tale of two cities for our portfolio that i own visa, microsoft and boeing but on the boeing side, they really have written off about everything and there's three good things that are going to happen between now and year end. we have an analyst meeting in september and china should finally recertify the 737 max. those three things could easily lead to much better prices from here

i think today is a 7% off sale and should be taken advantage of >> one follow-up comment it's pretty damming if you're in a duopoly and boeing and airbus are basically the only two games in town. >> i would push back and say that's true. but if the government doesn't let you sell those planes, you're not going to be able to makeup the ground and you're absolutely right it's a duopoly >> and let's talk about a couple of other names you still think boeing could bow a buy here what are some of the other names and are there any major changes in the kinds of stocks you're looking for right now? >> in this kind of market, i think one, think long term if the market drops 5 or 10%,

you don't want to get scared out of new investments the second is buy the companies that have already reported today you know a lot more information and you're getting it cheaper so, two stocks i really like that fit those circumstances are google and more bizarrely, the home builder, nvr. >> i think that's a name that bill smeed is a big fan of as well why mvr in particular here >> all the home builder stocks are down at least 25% with higher mortgage rates, of course the big question is are higher rates going to kill the housing market we don't think so. all our channel checks say demand remains strong. their problem is getting enough supply and getting through supply constraints we're are confident they'll do that and they actually made money in 2008 and 2009. they're buying back ton its of

stock and at nine times earnings, it's a 10-year low and we really like it and nobody else does. that's a good sign >> if i told you the market multiple was going from 18 to 16, or just in general as we wait out the fed tightening cycle, is there any reason why i couldn't wait and buy all of the names you mentioned a year from now. >> i don't think that's a great idea i think when long rates peek are and i think we're pretty close to that. i don't think we're at the bottom but i think we can see it i would pick stocks like nvr or google that you think are fair valuations and don't try to game it too much. fortune favors the bull. >> it certainly does great to see you as always we have a news alert in the bond market he was just talking about. the five-year notes just went up

for auction. rick >> boy, what a different tune than yesterday's terrific two-year note auction. 49 billion, five-year notes just left the treasury. the yield 2.785, which is the biggest issue. because the one issued market was trading around 2.775 so, it tailed a whole basis point. never good all the other metrics were actually rather average. so, d-plus, the grade i gave it and i think it's important to monitor all auctions because just because yesterday's two-year note auction went well kb doesn't mean investors have turned the corner looking for rates to go back down. and ultimately, to see equities in the green and yields more buoyant speaks volumes at this point, i would continue to say that we have very iffy results for many of the auctions moving forward

kelly, back to you >> we'll leave it there for now. now, my next guest has been warning for months that the fed is behind the curve. sounds like public is starting to agree anyway, he says they are still running policy too loose and that means it's still too high for the tightening that could be coming welcome in the chief economist and market strategist is it's great to see you again. just this idea that the fed is still behind the curve at a time when there are many other economists calling for recession, can you explain why you're sticking to your guns here >> absolutely. i think it's premature to call for a recession here typically that happens after a period of fed tightening that goes too far and results in inverted yield curves. the fed is just barely off the zero lower bound and not in a slow business cycle but in a business cycle that's been booming with inflation at a four-decade high which tripped the market up here

a bit year to date is there's simply no fed put with inflation rate as this high and with expected inflation rate ares, even if they come off a bit in the last week, still much closer to the year to date highs than the year to date lows. so, the fed is not going to be turning around and trying to rescue the equity market that would be completely inappropriate, given the current back drop. >> the latest point causing panic is first quarter gdp others are saying it could be close to zero. why doesn't that have you more concern issed? >> i think we could take that number and throw it in the trash can. it's an inventory issue that is going to likely hold that growth rate pretty close to zero. if you look at underlying consumption, it's expected to be quite strong, inflation is going to run very strong underlying private sector nominal demand looks like it

still boomed in the first quarter and if you look at jobless claims, continuing claims and data that came out of the conference board confidence survey yesterday where jobs are plentiful and hard to get. this is a white-hot labor market and in an economy with high inflation and forward momentum it's important the fed does not back away and wigt wither from its responsibility to try to restore price stability. we've gotten away from that. the fed has a job to do and they're in a bit of a predicament here, having fallen so far behind the curve. but they have no choice but to try to catch up. >> and that means liquidity should proceed further they're all learning this reality hard the corrections in some of the names at 80 to 90% we're talking about a rivaling of the.com boom in terms of the unravel.

it's impressive the broader markets have held up as well as they have, all things considered are you watching measures like m 2 to tell you when it's ran its course here? >> you mentioned the market multiples at about 18. typically with the 10-year yield, we'd be closer to 16. no one really knows where it's going to set ulout but probably we're going to have to look towards lower market multiples from here. but you're exactly right the market, as a whole, has held up incredibly well conis siddering this big rise in the 10-year treasury yield individual stocks and sectors have not, i think, when we first talked coming into the year, we were talking about high growth, valuation tech, spacs, crypto. and so, these areas that were trading at super high valuations relative to earnings, liquidity,

sales and they're not really priced for anything except speculation. either liquidity shrinks or discount rates move up and it's game over. big face plant the mark at's going to continue struggling with that going forward in these high growth, high valuation areas unfortunately. >> not just that you're bearish on the whole market. you've been talking about reopening stocks and final plays like that. we just heard from a stock picker a moment ago, and many have said this they think rates have pretty much peeked, we might have already seen the highs this year or we're right about at the highs. do you want to venture a take on that do you think the 10-year, for instance, could head higher and is that implicit in everything you're talking about, that it does go higher >> that call was actually made last year. it looked like the 10-year yield

perhaps paid for the cycle and trended down and look at where we ended up this year. with underlying inflation rates moving up, yes, it may have peeked here but if we wage growth, i would be very weary of calling a top in the 10-year yield here i'd look at sectors that don't really rely on the rate sector topping out here i think there are opportunities in the sectors for are sure. but i don't want those opportunities contingent on the rates market topping i think that's a fool's errand in this environment, unfortunately. >> what about viewers concerned your dog hasn't moved since last time we saw you? >> unfortunately, my voice puts him to sleep >> michael, thanks again for your time.

>> anytime >> with mkm partners still ahead, chip stocks are having the worst months in three years on both supply and demand concerns we're going to look at the best and worst of both groups plus meta and pinterest. and the stock saw its largest one-drop ever. it's coming up in earnings exchange and as we head to break, a quick check on the broader markets dow is up 322 points, but microsoft and visa helping big time naz tack and s&p up. ♪ ♪

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. welcome back china's renewed covid lockdowns have already sent ripples through the global supply chain again. frank. >> hey there, kelly. exports from the port of shanghai almost down 25% since covid lockdowns began in midmarch. the majority of consumer goods come into the country. moving containers by rail is

cheaper but a longer way to move goods in the yous. the declines you're seeing, for the most part, means retailers are moving their freight to the truck market, which is faster but more expensive and experts say likely a lot more expensive for all of us too. >> on the shelf is availability. you're not going to be impacted as a consumer but what we are seeing is increased prices that companies and retailers are looking to pass on and that's due to shipping costs, fuel costs. >> the disruptions from the covid lockdowns are expected to hit u.s. ports in coming months. how that will play out, unclear right now. but they could help companies find solutions to move their freight, trading higher today. and companies with a variety of solutions, including moving containers and allowing multiple companies to put a load in the same truck and freight brokerage, also

getting a boost today. >> our frank holland let's pause for a news alert on meta what's going on? >> we saw shares move lower on a headline from bloomberg. the headline with guidance for second quarter revenue but bloomberg rescinded the headline, said it was an error and i just spoke to meta they said it was a mistake on their part what's interesting is bloomberg put out guidance for what they said was second quarter guidance it's the samenumbers that facebook, meta had for the first quarter. meta tells me they did not give bloomberg anything ahead of their earnings after the bell today. meta platform shares are down 3% but the bloomberg headline that sent them lower, that was an error. >> there was just a company in

the last quarter or so that released earnings early. everyone's on pins and needles waiting for these results. we appreciate the clarification. thank you. if you learn anything more, let us know. and meta as she mentioned, is almost back to where it was before the dip we saw on the headlines. this ti chart is a chip stocks are being hurt by china's lockdowns. texas instruments is down, although well off the lows after the company's results, it wasn't the current quarter that's the problem. it's their guidance. their cut revenue productions, saying, quote, there are many customers that are shut down, they're not taking deliveries. too soon to say when they'll come back online let's ask the senior semiconductor analyst. i can't imagine this is just a texas instruments problem or maybe it is.

>> thanks for having me on i think it's problem for the entire supply chain. especially shanghai, which is one of the biggest manufacturing hubs in china. along with the shanghai port, a huge shipment there. and-all the way to beijing you're seeing it impact sem is isuppliers and well. and mention europe with other protukz and supply constraint. cancellations from europe as well they're factoring into the guides for chip suppliers. >> you think the ought so supply chain is less effective here give us some of the companies effected this time around and others where maybe investors don't need to worry. >> all those effected more

because you have bmw with, tesla. some actually based in shanghai. but you're seeing that factor into some of the pc names and also some of the handset oems as well when you see less impact, may be the semicap equipment side but really demand can be robust. we think part of the equation and they need to focus more. >> let me end it with names i'm more familiar with a couple of struggling stocks. but to you here, you think in some ways, the clouds may be parting at least on their supply chain troubles

>> i think going to the second half is supply chain stock demand, especially covid lockdowns in china should start to improve and so, that plays very well because less constraints to moderate and they start to come back to normal tlal drives a much better outlook. a shutdown in shanghai >> at least they won't have it as an excuse anymore let's put it that way. coming up, the health care divide is bio tech verses big pharma the stocks that have fallen out of favor and those holding up amid all the volatility. you're looking at one of the winners here we'll reveal the name ahead.

and mortgage rates spike mtgre have the shocking figures onorage rate applications. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ [sfx: street ambience] ♪ ["fly me to the moon"] ♪ ♪ ♪ imagine a community where millions share ideas and trade stocks, crypto and beyond.

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found a lighter light beer, or had an even smarter smartphone." do you think any of us will look back on our lives and regret the things we didn't buy? or the places we didn't go? ♪ i'd go the whole wide world ♪ ♪ i'd go the whole wide world ♪ welcome back to "the exchange, everybody. but it's giving way somewhat and we're up 253 right now we're looking pretty much across the board. let's look at the sector where techses and materials are your lead today communication services down about 2% and the only sector in the red as alphabet and meta report solar stocks coming back from

yesterday's route with shares popping more than 8% after they reported record revenue. steph enz spoke with the ceo who said the company is tripling down on europe as russia suspended gas shipments. something for all of us to keep in mind. shares of spotify hitting an all-time low after getting weak subscriber outlook and saying they will no longer issue annual guidance shares are down almost 11%, around 98 and 34% below their direct listing price from 2018 so, a really rough story here. >> you got it. >> the minneapolis police department has engaged in pattern of racial discrimination that's the find gsz of a two-year investigation by minnesota human rights after george floyd was killed by a city police officer. the changes recommended by the report and the reforms

minneapolis officials will need to consider. 7:00 eastern with shep smith in the ukrainian city of kherson, russian forces used tear gas to break up a demonstration. they say russian forces used stun grenades on the protesters. and back home in new york, former president trump has appealed the contempt ruling by a new york judge over his failure to turn over documents that had been subpoenaed the judge ordered trump be fined $1 $10,000 a day until the documents are turned over. unclear if the appeal will suspend those fines. >> tyler, thank you and i will see you soon still ahead, could we see another meta breakdown or pinterest stocks are big tech partnerships the key to post-pandemic growth. everything you need to know in earnings exchange next

welcome back, everybody. time for another edition of

earnings exchange with more key earnings on tap this afternoon, especially meta or facebook. let's get a look at the story, the action and trade on three names we're watching closely after the bell it's time for are today's earnings exchange. meta platforms is number one and those confusing guidance headlines this hour, looks like it was all just a mistake. the shares are down nearly 50% it's also declined after three of the last four earnings reports. back with what we're watching after the bell today daniel shai, director of options at simpler trading what are we anticipating >> there's so many factors that meta is grappling with right now. first is is the operating change something meta has said it's working on improving targeting, despite those challenges the question is how much

progress are they making when it comes to the ios changes and they've shifted users towards reel this is a short-form video format that compete as with tiktok might be good from an engagement perspective but not from a revenue perspective. they don't make as much when people spend time in that format there's risk that their success could end up damaging their topline and there's macro economic issues that were flagged by snap, as well as youtube. >> and these apple privacy changes do seem like they've had a big impact what do you do with the stock here >> i think this is assured i don't like facebook at all i think the big run up we saw last year, i don't know eif that's ever going to come through. but i think they're pouring money einto that and they have so many other issues

i don't know anyone younger than me on facebook when the kids don't like the platform, it's going to continue dying out. last quarter, they saw subscribers drop pretty substantially and that's why we saw the big drop in the stock. i think it can trade to at least 150, if not lower. >> and you don't like shorting names but you see risk of a netflix kind of move here. >> and that's the tricky part with something like facebook when you're a trader, coming in and shorting the lows, it's not going to be the highest probability place to short you want to come in and short these stocks on days where they rally. if there is some positive news but at the same time with, we're in a weird situation in the market right now where so many tickers are on the lows that if they break, they can fall hard if you're going to trade it on earnings, make sure you control your risk because while a netflix move, you could kill it

on at the same time, it's a risky overnight trade. >> and shares are around 175 for context. stay right there julia, stay there as well. pens itself is reporting after the bell it's down 24%. ironically, that's only the worst month since last july. the trend has been poor. down two of the last four times. prior to that, it was a huge pandemic beneficiary >> so, that's right. the interesting thing about pinterest is it's suffering from all the same macro economic challenges that meta is but it was such a beneficiary of the pandemic people were using it to pin their sour dough recipes and home office remodels and they saw a decline in users in the past two quarters. a big surge in usage and then they were not able to hold on to those users. i think the additional challenge for pinterest is this challenge

of are they going to be able to maintain engagement? and there's so much competition, whether it's tiktok or options on streaming i think they have a real user and engagement challenge, on top of all the other advertising issues meta is reckoning with as well >> how would you trade this one? >> when i lack at this ticker, i definitely agree with everything jewel jusaid they did increase revenue last quarter. they noted they increased it 20% year over year, despite the drop in members and when you look at earnings, they've been beating earnings pretty consistently. so, when i have something that i have a down trend, right clearly been falling, still falling. but yet they do well on earnings i really don't like to come in and short the name prior to earnings because they could surprise and it could trade higher for me, on this one, i'm going to stay out of it.

i think riltser volatile in earnings i mean, sometimes that's the best answer. and you can continue trading it lower with the trend on the short term but for me, personally, i hope pinterest is comes back long term i just don't think it's quite there yet. it's still falling >> i recall when we talked about tesla with results that you're more of a neutral is stance. the shares, since then, a lot has happened its founder took over another company. it's been struggling a lot does anything jump out to you about tesla right now? from a trading point of view >> i have so much to say about tesla. when we talked about tesla, we did talk about the fact that selling a neutral strategy on earnings is really the best thing to do in that type of situation. because you'll see it pop and then you'll see it fall and when you can sell options with high volatility, you can buy them

back the next day. and that's what i did on tesla and i think that's one of the only things you could do with pinterest. the worst part about the way tesla is trading is they absolutely crushed it on earnings and it traded higher and it's been dropping ever since. i think it's a bad omen for the stock market in general. and i think if they can crush it like that and microsoft can crush it like that and the nasdaq is not impressed, it's not a good situation for this quarter earnings in general. >> i remember you saying that about stocks in the past beware the ones that pop and dropple. let's quickly finally close things out with teledoc. this stock is 70% off its two-week high. >> one of the thingswe're watching is top line growth. revenue growth is one of the areas they shine they never really shine on the bottom line.

they've only beaten, in terms of the bottom line, about half the time the other thing to watch is what they're doing in terms of generating revenue from membership chronic condition care is one of the things they're really pushing and trying to get people on more than one a lot of people have more than one chronic condition. that adds extra dollars in terms of membership fees and the growth in terms of mental health that's one of the really strong areas where they're growing in terms of direct to consumer. but on the other side and what could weigh on the bottom line is rising costs for providers. we've heard this from hume ana, this morning, from hospitals that is one of the areas that is very difficult in terms of are retention and last quarter they paid bonuses to try to retain providers. that's one of the things that's going to continue to weigh on the bottom line in this tight labor market

>> how they lose some of the advantages daniel, teladoc and paypal which you correctly warn would us about. which would you rather, i guess, short here, what would you do with these two names under similar precarers? >> i think both are assured, especially teladoc this isn't 2020 anymore and companies like this that rallied so hard, they're still losing money and there's way too many people that bought them so far at the highs that still bailing. i think teladoc can go to 42 paypal, i think it's a short too. but my problem is it's already made the majority of my down side targ lts. it's one of those situations where where you can short it but you have on the dead lows. so, you better do it in a way that you're controlling your risk i think paypal is going to continue lower >> this whole situation has told

us so much about the market. daniel, thank you so much. we appreciate it and thank you as well. watching t-doc for us today. is and the health care sector taking two different paths pharma out performing while bio tech taking a hit. we'll look at how long it could continue and net gas prices have soaring as russia says it's cutting off gas supplies to some european countries. could thee stocks be good places to hide? flexshares etfs are built with advanced modeling. to fill portfolio gaps and target specific goals. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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a look at what's behind the divergence meg. >> it is the safer, more defensive big pharma names have been performing a lot better the past year, compared the riskier bio tech space you can see this if you look at the divergence of the health care atf is up more man 8% in the last year. compare that to the 45% drop for the xpi. that's more heavily weighted towards midcap and smaller cap bio tech stocks. big pharma has been a place that investors have liked to be in. at least year to date. bristol meyers up more than 20% and more than 10%. all of those names reporting earnings later this week biotech has been a completely different story. are at the end of last week, it looked like it was making a comeback and we got positive clinical data on monday, it has

not been enough to keep up the out performance and biotech down more than the broader market in the last week as well. covid names have seen the biggest sell offs. moderna, biowtech and down 70% s we're still waiting on word of application for the covid vaccine in the united states the things that they say would bring biotech back is more positive trial data and one name to watch is nylon pharmaceuticals. they're expecting to have key data in the next few weeks or months potentially on a key program that could move stocks significantly in either direction. >> i think more than anything, they would be the best thing for the sector from the fed. thank you so much. coming up, net gas prices spiking as russia threatens european supplies. what it means for american

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crude oil slightly positive, holding just under $102 a barrel but it's natural gas that is the story again. and it's a lot worse in europe where their natural gas contracts are spiking after russia told poland and shipments unless they pay in rubles it's pushing all of the nat gas stocks higher. let's bring in paul senki. every time we talk about oil, we say we have to get to nat gas. we're getting to it today. what do you do if the stock's eqt here >> we think they're in good shape. as you mentioned the situation in europe is owe chronic, it's got to be an ongoing pressure on u.s. natural gas prices. they will say, listen, we've sold out of lng so at the margin, you can't add a lot more gas demand or export until we get the next leg of export projects and they also worry about spy growth i think the lng story will keep

coming and i'm fairly confident that with a couple of projects starting up, we'll see start-up right now and there's still strength there and on the production side, i think the capital discipline of the big oil producers will also call down gas production, and so we think the rest of the year looks great for natural gas. >> when you say it looks great, for the payers this is going to be a problem, you know as we've seen with oil nat gas will get political especially as we get into the heat season, we can even see the people feeling the impact for their electricity this summer if they start using air-conditioning is it your expectation that we stay around these levels >> kelly, you make a great point. i had a major client say he doesn't believe it will be tenable for us to continue exporting natural gas if prices truly go crazy which is to say they doubled again from here you think i'm crazy we did see $14 natural gas in the 2000s, i

don't think it will happen, but this is a major client who i take seriously and he's worried that there is a potential outcome like that that we can't export as long as we're suffering in the u.s for now this $7 is okay. the other aspect to natural gas, by the way, is that coal prices are so crazy so, of course, the typical substitution that you would do at these levels into coal doesn't work the way it normally does and coal, by the way has sold out, too and inventories are low, too >> we're in a situation where we heard calls banning lng exports from some politicians. what would the stocks do if the rhetoric starts to ramp up on the other hand, it speaks to the fact that there are shortages and it sounds like they can basically set their price now. >> you'll have to be skcurrying back to the take and i think it was earlier this year, so it will be interesting to see how

the market reacted at that time, but essentially big consumers on the natural gas on the industry side started asking for export limitations and it's hypocritical because the margins are enormous because they're selling that products and it's the same into markets that are obviously hugely affected by the huge gas prices in europe. so really, they haven't be shouting in the way they are and i think you're right it's more about individuals, you know, home heating and schools where it will become an issue. it will be an issue in the winter and they're in good shape. >> is there anything to do to differentiate between the stocks and maybe less favorable on the lng names or more so if you don't think those political headwinds will be there. is there any differentiation you'd make among the names here. >> as you mentioned infrastructure is so big in the u.s. and you have this crazy

anti-natural pipeline pressure that stops pipes being built out of the marcellus and why people like anterra which had a takeaway from the marcellus and energy transfer is at play because they've got texas infrastructure and texas will be a place where typically pipelines get built and gas gets move there's a significant differentiation among the names and the peak companies present themselves as low companies and if you think about any o.g. or any of these names have a significant proportion of that production is natural gas and that will add to very strong earnings as we go through earnings season over the next several weeks. >> paul, thank you, as always. paul sankey with sankey

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welcome back, everybody. mortgage demand obviously getting hit by higher rates and that is hurting the lenders, but there is one surprising growth spot diana olick here with the numbers. diana? >> well, kelly, the drop in mortgage demand is not exactly unexpected given the sharp rise in mortgage rate, but the numbers are still pretty stunning total mortgage application was half of what it was. the biggest drop is in refinance demand it was down 70% from a year ago and a year ago refinance lending was the majority of the mortgage company business now it's down to barely a third. for lenders, that's a crushing

blow to business so take a look at some of those names. rocket, its stock is down 38% year to date the company announced it's offering buyouts to 8% of its workforce. home depot down 36% and the company ceo told me there would be layoffs there as well as it adjusts to the workload and finance of america down a whopping 58% year to date and guild mortgage down about 38%. last month guild was downgraded by wells fargo and j.p. morgan chase. mortgage rates have risen sharply and the average year up about two full percentagepoints year to date and the expectation is that it will continue to head higher as the fed is aggressive. >> diana olick, is it true that demand for adjustable rate mortgages went it a 13-year high and if so, my respective -- it's one thing to bet on stocks that could benefit on interest rates and it's another thing to stake everything on it >> you know, it's not as risky

as you think arms can be a fixed rate for five, eight, ten years and we have seen it double over the past three months and that's huge people are looking for a lower rate and the rate on an arm is looking at well over 5% for the 30-year fixed. again, those loans are not as risky as they used to be and they are a good option and if they'll stay in your home for five to ten years. >> that does it for u everybody. "power lunch" starts right now ♪ ♪ ♪ good afternoon, everyone welcome to "power lunch. i'm tyler mathson. here's what's going on on this week day we are tracking the technicals, uncovering value and finding oversold stocks that have the potential these days to rally. plus, th